ADI Global Distribution Inc. Common Stock (NYSE:ADIG) Posts Earnings Results, Misses Estimates By $9.11 EPS

ADI Global Distribution Inc. Common Stock (NYSE:ADIG) posted its earnings results on Thursday. The company reported ($8.65) earnings per share for the quarter, missing the consensus estimate of $0.46 by ($9.11), Briefing.com reports. The firm’s quarterly revenue was up 8.3% compared to the same quarter last year.

Here are the key takeaways from ADI Global Distribution Inc. Common Stock’s conference call:

• Third-quarter revenue rose 9% year over year to $1.31 billion, but average daily sales increased only 5% and standalone adjusted EBITDA fell 13% to $66 million. Gross margin was pressured by weaker residential demand, unfavorable product and customer mix, freight costs, and inventory charges; ADI also recorded a $660 million non-cash goodwill impairment.
• ADI lowered its 2026 outlook to revenue of $4.91 billion–$4.93 billion and adjusted EBITDA of $230 million–$240 million. It expects fourth-quarter Exclusive Brands sales to decline mid-single digits and gross margins to remain broadly in line with Q3, while its initial 2027 planning assumes continued residential weakness.
• Management is targeting $80 million in annualized gross cost savings, with $60 million already actioned and the full program expected by 2028; it is also assessing additional reductions. One ADI initiatives include consolidating systems, stores, and distribution facilities, though management said meaningful near-term gross-margin improvement is not expected.
• ADI generated $64 million in operating cash flow and ended the quarter with $208 million in cash and $708 million in total liquidity; net leverage was 2.9 times trailing standalone adjusted EBITDA. Deleveraging remains management’s top capital-allocation priority.

ADI Global Distribution Inc. Common Stock Trading Down 1.1%

ADI Global Distribution Inc. Common Stock stock traded down $0.10 on Friday, hitting $9.71. The company’s stock had a trading volume of 1,195,723 shares, compared to its average volume of 890,396. ADI Global Distribution Inc. Common Stock has a one year low of $9.06 and a one year high of $30.99. The company has a debt-to-equity ratio of 0.40, a current ratio of 2.80 and a quick ratio of 1.62. The firm has a fifty day simple moving average of $18.36.

Analysts Set New Price Targets

A number of equities analysts have recently commented on ADIG shares. Zacks Research raised shares of ADI Global Distribution Inc. Common Stock from a “strong sell” rating to a “hold” rating in a research report on Tuesday, November 3rd. Seaport Research Partners began coverage on shares of ADI Global Distribution Inc. Common Stock in a report on Friday, August 14th. They issued a “buy” rating and a $35.00 target price on the stock. JPMorgan Chase & Co. cut their target price on shares of ADI Global Distribution Inc. Common Stock from $25.00 to $20.00 and set a “neutral” rating for the company in a research report on Tuesday, October 13th. Wall Street Zen upgraded shares of ADI Global Distribution Inc. Common Stock to a “hold” rating in a report on Saturday, August 29th. Finally, Evercore assumed coverage on ADI Global Distribution Inc. Common Stock in a research note on Monday, September 28th. They issued a “hold” rating and a $23.00 price objective on the stock. One investment analyst has rated the stock with a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus target price of $24.25.

ADI Global Distribution Inc. Common Stock News Roundup

These are some of the ADIG news items that stood out recently:

• Negative Sentiment: ADI reported a $655 million net loss, including a $659 million non-cash goodwill impairment charge, and an adjusted quarterly loss of $8.65 per share versus analysts’ consensus for $0.46 in earnings. The impairment reflects weaker residential demand and lower projected earnings and cash flows. Article: ADIG Investor Alert
• Negative Sentiment: The company cut its 2026 revenue outlook. Exclusive Brands average daily sales fell 2% in Q3, with ADI citing residential-market weakness and unfavorable product and customer mix—factors that could weigh on near-term results. Article: ADI Global Distribution misses guidance, cuts outlook
• Negative Sentiment: Two law firms announced investigations into whether ADI complied with federal securities laws. These are investigations, not findings of wrongdoing, but could add uncertainty for investors. Article: Securities law investigation announced

ADI Global Distribution Inc. Common Stock Company Profile

ADI Global Distribution Inc. is a wholesale distributor of products and solutions for security, life safety, audiovisual, and other low-voltage applications. It serves professional installers, systems integrators, and businesses with products including video surveillance, access control, intrusion and fire detection, networking, smart-home equipment, and related wiring and accessories. The company also provides services such as technical support, training, and digital tools to help customers select and deploy systems.